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☆ How to get an even higher CD rate than you see advertised
▼ + stars: | 2023-09-19 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Higher yields on certificates of deposit are out there, but you'll have to venture beyond your favorite bank to get them. "There could be as much as a 50-basis point difference going to a brokered CD," he said. Brokered vs. bank offerings With a bank CD, the investor goes directly to the institution to buy the instrument. For instance, brokered CDs purchased via Vanguard begin at 1 to 3 months and go out beyond 10 years. The value of the CD will fluctuate with interest rates, with the price declining as yields run higher.

Persons: Malcolm Ethridge, Greg McBride, McBride, Ethridge, Michael Bloom Organizations: Wealth, Vanguard, Bankrate.com . Bank, Federal Deposit Insurance Corp Locations: Rockville , Maryland

☆ This year’s hot yields could be 2024’s tax hit. Here’s how to prepare
▼ + stars: | 2023-09-08 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

The Crane 100 Money Fund Index has an annualized 7-day current yield of 5.16% as of Thursday. This way, you're deferring the tax hit on the income until you begin to draw down from the account. To that effect, some money market funds invest in municipal bonds and thus produce tax-exempt income. Investors in high-tax locales may be especially interested in state-specific tax-exempt money market funds. The Fidelity New York Municipal Money Market Fund (FAWXX) carries an expense ratio of 0.42%, and it has a 7-day yield of 3.34%.

Persons: US3M, Tim Steffen, Baird, you've, Jerrod Pearce, Pearce, Steffen Organizations: Internal Revenue Service, Creative Planning, Vanguard, Money Market Fund, SEC, Fidelity New York Municipal Money Market Fund Locations: Vanguard California

☆ How to boost the cash flow even more from your fixed income investments
▼ + stars: | 2023-07-20 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +3 min

With interest rates peaking, now might be a good time to boost the cash flow you're generating in your fixed income portfolio. A core and satellite approach to boost cash flow For liquidity, UBS recommends a core-satellite approach. You also know when you'll be getting your income payments from the bonds, which generally pay interest twice a year. The first is "everyday cash," which means investors should be stashing money that they can readily withdraw if needed. The second tier is "savings cash" for money that you can afford to lock up for a short period of time.

Persons: US1Y, Marianna Mamou, you'll, Mamou, Michael Bloom Organizations: UBS, Bread Financial, Bread, Investors, SEC

If the market gyrations and Silicon Valley Bank's failure are rattling your faith in stocks, there are places to look for safety. But for cash and bond allocations, T-bills – U.S. Treasurys with maturity of one year or less – might be the ticket. The rates will adjust and correct [at some point], and these short-term rates will go back to normal," he said. When buying bank CDs, investors should be mindful of the Federal Deposit Insurance Corp.'s coverage, he said. Hans Olsen, chief investment officer of Fiduciary Trust Company, highlighted short-duration, high-quality bonds are where it's at for safety.

☆ Boost your portfolio income with this hybrid asset. Just be aware of the recession risk
▼ + stars: | 2023-02-16 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

For yield-hungry investors, preferred stocks offer a way to boost portfolio income. Preferred stocks are a hybrid asset. They have yields, which move inversely to the value of the preferred stock – the same way bonds do. "However, with bond yields rising, the place for preferred stock in a portfolio should be used sparingly." For those who want to stretch for yield and take on a little more risk, preferred stocks are another attractive possibility.

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